A supreme court judge in New York state may ask Coinseed to cease operations after claims were made that it had restricted customers from accessing their accounts, ultimately reducing the value of their holdings.
Michelle Gitlitz was appointed by Judge Andrew Borrok as the company’s receiver. Gitlitz is a partner at Crowell & Moring, and head of blockchain as well.
Gitlitz can’t bring in accountants, outside counsel, or appraisers without getting permission from the court first. Letitia James, New York state Attorney General attempted to shut down Coinseed for continuing to defraud its customers, even after legal pressure.
James filed a motion that would in effect freeze all trading activity and stop operations in general. Coinseed was accused of taking $1 million from investors through false claims and hidden fees.